Beijing New Space Technology (SH:605178) Zheng Quan Zhi Xing·2025-06-23 17:26Core Viewpoint - The company reported a significant revenue increase of 68.14% year-on-year for 2024, reaching 341 million yuan, primarily driven by acquisitions and large project orders in the fourth quarter [1][5][10]. Revenue and Growth - The company achieved a revenue of 341 million yuan in 2024, with a year-on-year growth of 68.14% [1][5]. - The revenue growth was attributed to the acquisition of Jiepang and Hebei New Time Space's smart parking business, contributing approximately 110 to 120 million yuan [1][5]. - Major project orders in the fourth quarter, specifically from Guang'an and Quanzhou, contributed about 108 million yuan to the revenue [1][5]. Revenue Recognition Method - The company uses the input method to determine the progress of performance obligations, recognizing revenue based on the proportion of cumulative actual costs incurred to the estimated total contract costs [2][3]. - For projects where progress cannot be reasonably determined, revenue is recognized based on the costs incurred that are expected to be recoverable [2][3]. Project-Specific Revenue Details - The Guang'an project and Quanzhou project are both lighting engineering projects, with revenue recognized based on the input method, ensuring compliance with accounting standards [2][3]. - The Guang'an project reported a completion progress of 47%, contributing 77.26 million yuan to revenue, while the Quanzhou project reported a completion progress of 90.57%, contributing 30.29 million yuan [4][5]. Smart Parking Business Growth - The smart parking business generated 118.31 million yuan in 2024, a 245.69% increase from 34.22 million yuan in 2023, largely due to the acquisition of Jiepang [5][20]. - Jiepang contributed 100.28 million yuan in 2024, up from 16.51 million yuan in 2023, marking a growth of 507.51% [5][20]. Industry Context - The smart parking industry is expected to grow significantly due to the increasing number of vehicles and the gap in parking supply [11][12]. - Government policies are promoting smart parking as part of urban infrastructure development, with targets for coverage in major cities [11][12]. Financial Performance and Challenges - Jiepang reported a net loss of 6.45 million yuan in 2024, with a performance commitment not met, raising questions about the acquisition's valuation and future profitability [10][21]. - The company is required to disclose reasons for Jiepang's losses and the implications for the smart parking business's revenue recognition [10][21].